CCPA Bars Hotels, Restaurants from Levying ‘LPG Charges’ in Bills

In a significant move to protect consumer rights, the Central Consumer Protection Authority (CCPA) has issued a strict advisory prohibiting hotels and restaurants from levying additional charges such as “LPG charges”, “gas surcharge”, or “fuel cost recovery” in customer bills. The Authority has termed such practices as unfair trade under the provisions of the Consumer Protection Act, 2019 and warned establishments of stringent action in case of violations.

The advisory comes after the CCPA observed a growing trend among hospitality establishments of adding such charges by default, often without the explicit consent of customers. According to the Authority, these charges are being imposed over and above the prices listed on menus and applicable taxes, thereby creating a lack of transparency and placing an undue financial burden on consumers.

The regulator noted that multiple complaints were received through the National Consumer Helpline (NCH), along with inputs from media reports, highlighting the widespread nature of this issue. In many cases, customers were either unaware of these additional charges or felt compelled to pay them, assuming them to be mandatory.

Clarifying its stance, the CCPA emphasized that operational costs such as LPG, electricity, and other fuel expenses are integral to running a business and should already be included in the pricing of food and beverages. Passing on such costs separately to consumers through mandatory charges, regardless of the terminology used, is a violation of fair trade practices as defined under the law.

The Authority further pointed out that renaming such charges as “fuel surcharge” or “gas recovery fee” is merely an attempt to bypass earlier guidelines issued on July 4, 2022, regarding service charges. It reiterated that any additional fee levied by default, irrespective of its nomenclature, would be treated as a service charge and would fall under regulatory scrutiny.

Under the new advisory issued under Section 10 of the Act, the CCPA has laid down clear directives for hotels and restaurants. It has categorically stated that no establishment shall impose “LPG charges” or similar fees automatically in customer bills. The menu price displayed must be the final amount payable by consumers, excluding only applicable taxes. Additionally, customers must not be misled or forced into paying any extra charges that are not voluntary in nature.

The move is aimed at ensuring transparency in billing and safeguarding consumers from hidden or arbitrary costs. The CCPA has made it clear that any violation of these directions could invite strict action under the Consumer Protection Act, 2019, including penalties and other enforcement measures.

To empower consumers, the Authority has also outlined multiple channels for grievance redressal. Customers who encounter such unfair practices can request the concerned establishment to remove the charge from their bill. If the issue remains unresolved, they can lodge a complaint via the National Consumer Helpline by dialing 1915 or using its mobile application. Consumers also have the option to approach the appropriate Consumer Commission through the e-Jagriti portal, or submit complaints to the District Collector or directly to the CCPA.

Officials said that the Authority is closely monitoring compliance across the country and will take necessary action against violators. The advisory serves as a strong reminder to the hospitality sector to adhere to fair pricing practices and maintain transparency in dealings with customers.

With this step, the CCPA aims to reinforce consumer confidence and ensure that diners are not subjected to hidden charges while availing services at hotels and restaurants across India.